Barnes & Noble, Inc. (BKS), 3D Systems Corporation (DDD): Market Moving Upgrades Worth Noting

Personally, I am a big fan of the 3D printing space, and 3D Systems Corporation (NYSE:DDD) is without question my favorite. The only problem is its valuation, as the stock trades at 11.50 times sales and at 38 times next year’s earnings. With that said, I have to agree that 3D Systems Corporation (NYSE:DDD) has a lot in its favor, and could very well continue to trade higher. However, as a value investor, I prefer to be patient, and wait for a pullback or for fundamentals to more closely compare to its valuation.

Conclusion

In my book Taking Charge With Value Investing (McGraw-Hill, 2013) I explain that analyst calls can offer a great buying opportunity. Sometimes they can educate you on an under-the-radar company, and when they provide new information from surveys or channel checks then it almost always indicates a “buy.” However, you have to be careful with those that “follow-the-leader” and are issuing upgrades simply to meet the needs of their asset management division or to maintain balance between themselves and other large name firms. When it’s all said and done, you have to view them with a bit of skepticism, but respect nonetheless; and those that are good use as an opportunity.

The article Monday’s Market-Moving Upgrades Worth Noting originally appeared on Fool.com and is written by Brian Nichols.

Brian Nichols has no position in any stocks mentioned. The Motley Fool recommends 3D Systems. The Motley Fool owns shares of 3D Systems and has the following options: Short Jan 2014 $36 Calls on 3D Systems and Short Jan 2014 $20 Puts on 3D Systems. Brian is a member of The Motley Fool Blog Network — entries represent the personal opinion of the blogger and are not formally edited.

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